A Taxpayer May Not Avoid Responsibility for Payment of Income

question 67

True/False

A taxpayer may not avoid responsibility for payment of income taxes by assigning the income to a third party.

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Definitions:

Restraint Of Trade

Legal contracts or business practices that limit competition or restrict the freedom to operate in a market.

Unreasonable

Not based on or acting according to reason or sound judgement; exceeding the bounds of acceptability or fairness.

Legally Binding Contract

An agreement between parties that is enforceable by law, requiring all involved to fulfill their contractual obligations.

Agreement

A mutual understanding or arrangement between two or more parties, often legally binding, regarding their rights and duties.